Summary
Small-cap value stocks are shares of small businesses that trade at a low price relative to business fundamentals.
A business is considered small-cap if its market cap is 300M to 2B USD.
Value generally means the share price is in the bottom 25 to 35% of all small-caps, relative
to earnings, book value, or other metrics (per share).
More commentary....
Summary values are provided below, followed by a table of the historical annual returns.
For the year 2024 and forward, we use the MSCI US Small Cap Value Index.
Values are total returns including dividend reinvestment.
Entire history mean annual return: 17.4%
Entire history min/max annual return: -55.4%/124.7%
Last 25 years mean annual return: 14.4%
Last 10 years mean annual return: 11.0%
Last 5 years mean annual return: 13.5%
Table of total yearly returns of US small-cap value stocks (includes dividends)
| Year | Return [%] |
|---|
| 2024 | 8.8 |
| 2023 | 15.1 |
| 2022 | -3.1 |
| 2021 | 42.8 |
| 2020 | 3.8 |
| 2019 | 18.9 |
| 2018 | -12.9 |
| 2017 | 7.5 |
| 2016 | 37.3 |
| 2015 | -7.9 |
| 2014 | 3.6 |
| 2013 | 42.6 |
| 2012 | 17.4 |
| 2011 | -5.7 |
| 2010 | 31.4 |
| 2009 | 49.3 |
| 2008 | -36.6 |
| 2007 | -12.6 |
| 2006 | 21.2 |
| 2005 | 7.6 |
| 2004 | 23.4 |
| 2003 | 67.1 |
| 2002 | -6.9 |
| 2001 | 28.2 |
| 2000 | 19.6 |
| 1999 | 8.1 |
| 1998 | -5.0 |
| 1997 | 39.2 |
| 1996 | 25.3 |
| 1995 | 31.3 |
| 1994 | 2.5 |
| 1993 | 25.8 |
| 1992 | 34.9 |
| 1991 | 46.9 |
| 1990 | -23.7 |
| 1989 | 13.2 |
| 1988 | 34.0 |
| 1987 | -5.6 |
| 1986 | 8.4 |
| 1985 | 29.8 |
| 1984 | 2.4 |
| 1983 | 49.4 |
| 1982 | 37.0 |
| 1981 | 20.4 |
| 1980 | 24.6 |
| 1979 | 35.2 |
| 1978 | 23.4 |
| 1977 | 22.1 |
| 1976 | 58.6 |
| 1975 | 65.8 |
| 1974 | -17.9 |
| 1973 | -30.5 |
| 1972 | 7.6 |
| 1971 | 15.1 |
| 1970 | -0.5 |
| 1969 | -28.8 |
| 1968 | 49.0 |
| 1967 | 69.3 |
| 1966 | -9.7 |
| 1965 | 40.0 |
| 1964 | 25.4 |
| 1963 | 29.5 |
| 1962 | -10.3 |
| 1961 | 29.3 |
| 1960 | -10.8 |
| 1959 | 15.1 |
| 1958 | 76.9 |
| 1957 | -18.6 |
| 1956 | 1.7 |
| 1955 | 23.5 |
| 1954 | 64.3 |
| 1953 | -10.6 |
| 1952 | 9.5 |
| 1951 | 9.9 |
| 1950 | 63.4 |
| 1949 | 19.7 |
| 1948 | -4.9 |
| 1947 | 8.8 |
| 1946 | -10.5 |
| 1945 | 65.4 |
| 1944 | 52.5 |
| 1943 | 78.6 |
| 1942 | 34.1 |
| 1941 | -0.2 |
| 1940 | -8.1 |
| 1939 | -3.7 |
| 1938 | 32.6 |
| 1937 | -50.5 |
| 1936 | 66.6 |
| 1935 | 47.7 |
| 1934 | -6.2 |
| 1933 | 124.7 |
| 1932 | -10.5 |
| 1931 | -55.4 |
| 1930 | -43.5 |
| 1929 | -37.0 |
| 1928 | 32.0 |
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Click here for other historical returns.
US small-cap value stocks have outperformed the rest of the market over the long haul,
the so-called small-cap value premium.
On average, the value of these stocks has tripled every 7 years!
Some consider this premium to be justified because these stocks have a higher risk of failing, resulting
in a complete loss of capital.
More recently, both small-cap and value stocks have underperformed the overall market.
It remains to be seen if this is an anomaly or a new normal.
Funds that track small-cap indexes are highly recommended by
prominent investors like
Paul Merriman and
Ben Felix.
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